Hello Everyone,
Here’s the situation: I significantly overpaid for my VSC, and when I asked about a refund, I was told that my monthly payments would stay the same, but I’d just pay for a few fewer months to account for the refund. This explanation doesn’t add up for me. Has anyone else experienced or heard of something similar?
*For context, we agreed on the VSC price during the finance discussion, but I decided the next day I didn’t want it (I was barely awake during the discussion).
That’s usually how loans work. If you receive a partial refund, it’s similar to making an extra principal payment, which reduces the total amount you owe and shortens the number of payments.
If you cancel within 30 days of purchasing the vehicle, there shouldn’t be any penalties. After 30 days, depending on your VSC contract, you might get a partial refund. To cancel, don’t just call or talk; you need to submit a written letter. If you’re financing the vehicle and they agree to the refund, the amount you paid for the service contract could be credited to your account balance. If the dealer or VSC partner refuses to honor the cancellation and refund, you can contact the insurance company listed on the VSC. I’m not an expert, but I’ve been in a similar situation, and it can take some time.
If you financed, this is accurate.
You won’t receive cash directly.
The refund will go to the lienholder and be applied to your loan.
It should reduce your principal and shorten the overall loan term.
Did you sign a contract???